Inbank Unaudited Financial Results For Q2 And 6 Months 2024

2024-08-07 01:17:03

(MENAFN- GlobeNewsWire - Nasdaq) In Q2 2024 Inbank earned a consolidated net profit of 3.8 million euros increasing 41% year-on-year. The 2024 half-year net profit was 7.7 million euros, which is 71% more than a year ago. The return on equity in Q2 was 11.6%.

Loan and rental portfolio increased by 15% year-on-year reaching 1.08 billion euros. The deposit portfolio grew by 22% compared to a year ago, totaling 1.18 billion euros. At the end of Q2, Inbank's total assets stood at 1.42 billion euros.
The Gross Merchandise Value (GMV) for the second quarter was 178 million euros, which is 3% less than a year ago, but 10% more than in the previous quarter.
Merchant solutions remained the largest segment, with Q2 GMV of 65 million euros. In terms of product segments, car finance showed strong results with 56 million euros of GMV, which is 32% more than a year ago. The GMV of green finance decreased by 19% compared to a year ago and was 23 million euros. Direct lending sales decreased by 10%, to 22.2 million euros and rental services decreased by 19%, to 12 million euros.
In Q2, impairment losses were 1.7% of the loan portfolio, for the first 6 months, the ratio was 1.5%.
By the end of Q2, Inbank had 895,000 active contracts and 6,100 active merchant partners.

Priit Põldoja, Chairman of the Management Board, comments on the results:

'During the second quarter of 2024, Inbank's financial performance continued to improve steadily. On the back of declining funding costs and increasing portfolio yield, Inbank's net income grew by 29% compared to the same quarter a year ago, while operating expenses grew by 17% during the same period. As a result, Inbank's quarterly net profit was 3.8 million euros which is 41% higher than a year ago.

Sales results were stable in the Baltics and decreased slightly in Poland. Sales in Czechia have more than doubled compared to a year ago and quarterly GMV was above 10 million euros for the first time.

Considering our consistent repricing efforts in all markets over the last 18 months, we are very happy with our sales results, and this is a testament to our product superiority.

For the first 6 months of the year, Inbank's impairment loss ratio was 1.5%. We expect our credit cost to remain within our target of 1.6%, as employment has remained strong and inflation is pulling back in all our markets.

Over the last 10 quarters, Inbank has managed to navigate a challenging macro environment by demonstrating discipline in repricing our products and focusing on operational efficiency. Margins have started to improve, and the cost-income ratio is starting to move towards 50%. At the same time, we are investing in our growth in the Czech market and will continue to bring our innovative electronics rental product to all Inbank markets by the end of 2024.

Managing this balancing act of delivering improving financial results while continuing to invest in our long-term competitiveness has been the focus of the Inbank management team over the last 18 months. While remaining cautious and disciplined, we are gearing up our organization to capture more growth opportunities in the second half of 2024 and beyond.'

Key financial indicators as of 30.06.2024 and for Q2

Total assets EUR 1.42 billion
Loan and rental portfolio EUR 1.08 billion
Deposit portfolio EUR 1.18 billion
Equity EUR 133.1 million
Net profit EUR 3.8 million
Return on equity 11.6%

Consolidated income statement (in thousands of euros)
	Q2 2024	Q2 2023 restated	6 months 2024	6 months 2023 restated
Interest income based on EIR	29 308	23 957	58 076	45 460
Interest expense	-13 072	-10 947	-26 684	-20 326
Net interest income	16 236	13 010	31 392	25 134

Fee and commission income	106	118	217	241
Fee and commission expenses	-1 183	-1 058	-2 369	-1 996
Net fee and commission income/expenses	-1 077	-940	-2 152	-1 755

Income from rental services	8 159	5 524	15 308	10 761
Sale of assets previously rented to customers	3 539	3 915	8 122	6 829
Other operating income	137	262	476	358
Cost of rental services	-5 337	-3 517	-10 126	-7 025
Cost of assets sold previously rented to customers	-3 386	-3 611	-7 736	-6 194
Net operating income/expenses	3 112	2 573	6 044	4 729

Net gains/losses from financial assets measured at fair value	305	23	1 195	-34
Foreign exchange rate gain/losses	557	205	218	288
Net gain/losses from financial items	862	228	1 413	254

Total net interest, fee and other income and expenses	19 133	14 871	36 697	28 362

Personnel expenses	-4 922	-4 134	-9 693	-8 171
Marketing expenses	-704	-867	-1 337	-1 665
Administrative expenses	-3 187	-2 711	-6 025	-5 118
Depreciations, amortization	-2 018	-1 578	-3 774	-2 972
Total operating expenses	-10 831	-9 290	-20 829	-17 926

Share of profit from associates	0	361	0	394
Impairment losses on loans and receivables	-4 127	-3 485	-7 326	-6 614
Profit before income tax	4 175	2 457	8 542	4 216

Income tax	-398	218	-801	310
Profit for the period	3 777	2 675	7 741	4 526

Other comprehensive income that may be reclassified subsequently to profit or loss
Currency translation differences	-277	-291	-257	-336
Total comprehensive income for the period	3 500	2 384	7 484	4 190

Consolidated statement of financial position (in thousands of euros)
	30.06.2024	31.12.2023	30.06.2023 restated
Assets
Cash and cash equivalents	234 457	172 921	117 593
Mandatory reserves at central banks	22 257	21 020	18 401
Investments in debt securities	25 767	33 581	31 269
Financial assets measured at fair value through profit or loss	1 045	79	7
Loans and receivables	988 939	942 056	873 513
Investments in associates	205	141	209
Other financial assets	2 441	5 268	5 113
Tangible assets	81 001	75 206	62 536
Right of use assets	23 479	26 716	22 345
Intangible assets	31 915	30 906	28 318
Other assets	8 304	8 185	10 504
Deferred tax assets	4 747	4 505	3 973
Total assets	1 424 557	1 320 584	1 173 781

Liabilities
Customer deposits	1 175 569	1 081 566	965 692
Financial liabilities measured at fair value through profit or loss	31	50	4
Other financial liabilities	58 870	60 927	56 114
Current tax liability	686	311	0
Deferred tax liability	374	204	103
Other liabilities	3 923	3 691	3 583
Subordinated debt securities	52 010	49 745	41 799
Total liabilities	1 291 463	1 196 494	1 067 295

Equity
Share capital	1 096	1 086	1 026
Share premium	44 804	43 563	31 855
Statutory reserve	103	103	103
Other reserves	1 250	1 543	1 384
Retained earnings	85 841	77 795	72 118
Total equity	133 094	124 090	106 486

Total liabilities and equity	1 424 557	1 320 584	1 173 781

Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 6,100 merchants, Inbank has 895,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.

Additional information:

Merit Arva
Head of Communications
...
+372 553 3550

Attachment

Inbank_Interim_Report_2024_Q2

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